- What is the role of the financial system?. Describe two markets that are part of the financial system in the U.S. economy?
- Why is it important for people who own stocks and bonds to diversify their holdings. What type of financial institution makes diversification easier?
- Consider a change in the tax code that might increase private saving. If this policy were implemented, how would it affect the market for loanable funds?
Financial system maintains a few key roles in the economy. It serves as a link between savers and investors, it promotes... View the full answer